'We commend you sincerely' – FABAG to Dr Ato Forson over fruit juice tax removal

The Food and Beverages Association of Ghana (FABAG) has welcomed the removal of the 20% excise duty on locally manufactured fruit juices, saying the decision will provide relief to producers and support the growth of the local industry.

Chairman of the Association, John Awuni, said members were particularly grateful to Finance Minister Dr Cassiel Ato Forson for acting on a concern the industry had raised for several years.

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The engagement forms part of efforts to strengthen collaboration between government and industry while promoting local production, value addition and opportunities for farmers.

Speaking at a meeting with the Finance Minister on Wednesday, September 30, 2026, Awuni said the Association had repeatedly called for the tax to be removed under the previous administration but said Dr Forson had taken action to address the issue.

“It only took you to boldly execute it. We want to commend you sincerely for that,” he said.

He said the Association had also written to the Finance Minister to formally express its appreciation for the decision and the government’s support for the industry.

“We did a statement on behalf of the Association and I believe that we sent a letter to your office to commend you, and particularly, and the government as a whole,” Awuni said.

According to him, the 20% excise duty had been a major concern for fruit juice manufacturers, who argued that it increased their production costs and made locally produced juices less competitive against imported alternatives.

The duty, which was introduced in 2023, is being removed under the new Excise Duty Act following Parliament’s passage of the legislation and presidential assent. The removal takes effect from October 1, 2026.

Dr Forson also announced the government’s decision to abolish the duty during the presentation of the 2026 Mid-Year Budget Review.

The Association said the policy change could give producers greater room to expand their businesses and increase the use of locally produced fruits in manufacturing.

Awuni also assured the government of the Association’s willingness to support its broader economic objectives, particularly measures that could strengthen local production.

“We have, particularly as an association, campaigned over the years, over and over the years, from the previous regime for something like that to be done,” he said.

He added that the Association was prepared to work with the government to find practical solutions to challenges facing the agricultural and food processing sectors.

“And on that note, we also want to say that we as an association are very committed to work with the government to achieve the objectives and the desires of the government and the country,” he said.

The Finance Minister, however, urged the Association to work with the government to find practical ways of addressing food gluts and creating markets for excess farm produce.



ANAS/MA